• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Nintendo's Sole Supplier for Switch Screens Slashing 30% of Workforce Due to Losses

S

Steiner

Banned
Article / Source

According to The Wall Street Journal, JPI reported a net loss of ¥31.5 billion ($286.4 million) for the financial quarter ending in June, and things don't seem to be looking up. Today it's come to light that JPI announced that it wouldn't rule out a partnership with a Chinese or Taiwanese company to survive. This, despite JPI's goal to be the number one domestic display business in Japan.
...
Japan Display executives apologized today for poor management of the company, and a drastic restructuring is due to take place imminently. This initiative will result in the loss of 3,700 jobs worldwide -- that's about 30% of JPI's current total workforce. Overseas operations will understandably be slashed, but more injurious is the fact that JPI will be shutting down domestic factories as well.
...
”We continue to face very severe market conditions," financial chief Takanobu Oshima said, predicting a 15% to 25% drop in revenue in the year ending March 2018 from a year earlier. Much of this loss is due to the fact that Apple, JPI's most prominent and lucrative partner, is moving away from liquid crystal displays in favor of OELD screens. Currently iPhone displays make up over 50% of JPI's revenue, and as Apple makes that shift to OLED, growth and revenue will only continue to retard for the struggling display manufacturer.
Click to expand...

Obviously JPI needs Nintendo more than Nintendo needs JPI, but it's still kind of sad. The WSJ article states that they're trying to accelerate their shift to produce more OLED displays, but companies like LG and Samsung are just so far ahead.
 
K

kami_sama

Member
I knew this was going to happen.
Before we even knew that they were manufacturing the switch's display, they had a lot of trouble, and I think they had to be bailed out by the government a while ago.
 
M

Madao

Member
so, since Apple ditched them, does this mean there's no Switch screen shortage atm?

also, what would happen if this company goes under? would Nintendo need to redesign the Switch to replace the screen?
 
Z

Zedark

Member
Madao said:
so, since Apple ditched them, does this mean there's no Switch screen shortage atm?

also, what would happen if this company goes under? would Nintendo need to redesign the Switch to replace the screen?
Click to expand...
Nah, IP'S screens aren't an issue at this moment, they can probably just make a deal with a new manufacturer without too much hazzle.
 
S

Skittzo0413

Member
Deeke[VRZ];245757944 said:
Could this affect Nintendo, or will they just go with someone else to make Switch screens?
Click to expand...

Probably the latter. LCD screens aren't really facing a component shortage and quite a few companies produce them. If anything it might raise the cost of manufacturing those screens for Nintendo but that wouldn't make a difference for consumers.
 
K

kami_sama

Member
Madao said:
so, since Apple ditched them, does this mean there's no Switch screen shortage atm?
Click to expand...
I don't think there has been a shortage of screens, the issues are with the nand memory.
also, what would happen if this company goes under? would Nintendo need to redesign the Switch to replace the screen?
Click to expand...

Probably, at least if they want to have a off-the-self display. If they have enough time, the new manufacturer could develop a new screen with almost the same specifications.
 
S

Servbot24

Banned
Nightii said:
God damn, how can Nintendo be so incompetent?


Big Fat "/s" goes here.
Click to expand...

I mean... selecting manufacturers to work with is a massively important part of bringing a product to market. Obviously Nintendo isn't altogether incompetent, but it's very clear they chose their partners poorly.

I would like to say this would not affect Switch stock, but considering Nintendo have already demonstrated they're incapable of delivering proper supply, I can't really say that.
 
V

Visualante2

Member
Sad that Apple can just pump up a company and drop them like this. It's not a very responsible way of doing business. I guess Apple is only interested in short term partnerships that offer the lowest price, not long term sustainable ones.

Nintendo should be commended for supporting domestic manufacturing. If Nintendo is not agile enough to pivot away from this risk then they are to be lambasted.
 
P

Peltz

Member
Madao said:
so, since Apple ditched them, does this mean there's no Switch screen shortage atm?

also, what would happen if this company goes under? would Nintendo need to redesign the Switch to replace the screen?
Click to expand...
Screens are likely not the reason for the shortages in the first place. It's likely the onboard storage and other components.
Visualante2 said:
Sad that Apple can just pump up a company and drop them like this. It's not a very responsible way of doing business. I guess Apple is only interested in short term partnerships that offer the lowest price, not long term sustainable ones.

Nintendo should be commended for supporting domestic manufacturing. If they're not agile enough to pivot away from this risk then they are to be lambasted.
Click to expand...
Eh... it's just business. Apple isn't responsible for that company's shortcomings.
 
P

Peltz

Member
RootCause said:
I'm glad I was able to get my IPS panel.
Here's hoping it doesn't mean a decrease in quality.


😭
Click to expand...
Same here. Although maybe it could lead to a shift to OLED and increase in quality. You ever know.

Nevertheless, switch's screen is easily the best screen in the history of Nintendo devices.
 
Z

Zedark

Member
Visualante2 said:
Sad that Apple can just pump up a company and drop them like this. It's not a very responsible way of doing business. I guess Apple is only interested in short term partnerships that offer the lowest price, not long term sustainable ones.

Nintendo should be commended for supporting domestic manufacturing. If Nintendo is not agile enough to pivot away from this risk then they are to be lambasted.
Click to expand...
Well, they don't need to either. They're the biggest around, anyone wants their business, and so sustainability need not concern them from a business standpoint.
 
lyrick

lyrick

Member
The Apple conversion to OLED has hit a lot of companies.

This event should have little to no impact on Nintendo or the Switch Screen availability. The size of the workforce at this company is being downsized due to lack of IPS iPhone screen orders. Until they actually convert to an OLED screen supplier, customers looking for supplies of IPS screens will probably be treated very well.
 
G

Gestault

Member
I know variations in orders from a company like Nintendo aren't enough to change much in this scenario (especially if it truly was a management issue), but I hate to think skittish ordering from Nintendo trying not to over-supply early on might have somehow contributed to undesirable price fluctuations for the screens on the Switch. I know the manufacturing bottleneck for Nintendo is the mobile chips.
 
B

Broken Hope

Member
Visualante2 said:
Sad that Apple can just pump up a company and drop them like this. It's not a very responsible way of doing business. I guess Apple is only interested in short term partnerships that offer the lowest price, not long term sustainable ones.

Nintendo should be commended for supporting domestic manufacturing. If Nintendo is not agile enough to pivot away from this risk then they are to be lambasted.
Click to expand...
Apple want to switch to OLED, Japan Display don’t make them, what do you expect Apple to do other than switch suppliers?
 
C

Cow Mengde

Banned
The funny thing is that if the Switch had more in stock, the company might make more money due to more screens being purchased.
 
D

Daedardus

Member
I doubt this will impact the manufacturing of the Switch screen much, it is one of their assured sources of revenue so they're making sure they focus on still producing them. The jobs cuts are more likely to be in departments that provided the cellphone screens to Apple.
 
V

Visualante2

Member
Broken Hope said:
Apple want to switch to OLED, Japan Display don't make them, what do you expect Apple to do other than switch suppliers?
Click to expand...
Maybe Japan display were stubborn. Maybe Apple is so secretive about their future plans that it doesn't allow their suppliers to keep up with Apple's demands. Who knows. Just strikes me as quite sad.
 
S

snap

Banned
Steiner said:
Article / Source



Obviously JPI needs Nintendo more than Nintendo needs JPI, but it's still kind of sad. The WSJ article states that they're trying to accelerate their shift to produce more OLED displays, but companies like Sony and Samsung are just so far ahead.
Click to expand...

I think you mean LG, Sony doesn't produce OLEDs.

Visualante2 said:
Couldn't speculate on what the leaders of Japan Display were thinking. Maybe they were stubborn. Maybe Apple is so secretive about their future plans that it doesn't allow their suppliers to keep up with Apple's demands.
Click to expand...

A switch to OLED has been rumored for years and a growing amount of flagships have been moving from LCDs to OLED over the last few years.
 
M

Madao

Member
ZiggyPalffyLA said:
And fuck over early adopters? Sounds par for the course to me.
Click to expand...

if the Switch follows the console pattern, every revision will be worse than the original version.

if it follows the handheld pattern, the revisions will be better.

so, it's 50/50 at this point.
 
Q

qko

Member
I do wonder if Nintendo will be able to either negotiate a new deal if it turns out moving operations to China/Taiwan makes the display cheaper.

Or if JPI going under, Nintendo may find themselves in a bidding war for their business since there is high demand for the Switch.
 
Blam

Blam

Member
Madao said:
if the Switch follows the console pattern, every revision will be worse than the original version.

if it follows the handheld pattern, the revisions will be better.

so, it's 50/50 at this point.
Click to expand...

So it's a 50/50 for a 50/50 chance to get worse as it goes on.
 
S

shotgunbob04

Member
I don't think people have anything to worry about.

I think Nintendo execs understand the importance of using only IPS for the Switch—it's a console that focuses on portable split-screen multiplayer which requires good viewing angles.

Nintendo will find other display manufacturers if they need to.
 
You must log in or register to reply here.

Similar threads

Full Q&A English Summary of Nintendo's Financial Results Briefing for Fiscal Year Ended March 2024
Business
0
400
Thick Thighs Save Lives replied
Are Japan’s console and mobile game markets shrinking in favor of PC games? Developers discuss
Opinion Game Dev
39
2K
Randall365 replied
Fails of 2022: the Nintendo Switch really showed its age
2 3 4 5
215
14K
Shut0wen replied
[GameSpot} Nintendo Switch 2: 11 Features We Want, From Backwards Compatibility To 3DS Support
2
52
4K
Edgelord79 replied
Interview with Shuji Utsumi (SEGA Co-COO) by Japanese media outlet Seizo-Trend
Business Game Dev
1
1K
Unknown? replied
Top Bottom